Income Tax (Trading and Other Income) Act 2005 section 518

The index categories

Section 518 defines the three categories of index that determine whether a life insurance policy or capital redemption contract qualifies as a non-personal portfolio bond under section 517.

• Category 1 is the retail prices index (RPI), the standard UK measure of inflation.
• Category 2 is any general index similar to the RPI that is published by a foreign government or an agent of a foreign government.
• Category 3 is any published index of prices of shares listed on a recognised stock exchange.
• If the property linked to a policy or contract is determined solely by reference to one or more of these index categories, it is not treated as a personal portfolio bond.